Certificates of deposit (CDs) require that money be kept in the account for a specific period of time to receive a specified return. CDs often require a larger initial investment than a savings account but yield a higher return. The longer the deposit length, the higher the interest rate will generally be because savers are keeping their money on deposit for a longer period of time. CDs are insured by the FDIC for up to $250,000, just like a passbook …
How is the interest rate on EE U.S. savings bonds determined?
Effective May 1, 2005, the interest rate on new Series EE bonds is fixed for the life of the bond. Existing Series EE bonds purchased before May 1, 2005, were not affected and continue to earn interest based on 90% of the average market yield of five-year Treasury securities.
Series EE bonds have used this variable interest rate method of crediting interest since 1982. Interest rates on previously issued U.S. savings bonds will continue to change every six months on …
What are investment assets?
Investment assets are tangible or intangible items obtained for producing additional income or held for speculation in anticipation of a future increase in value. Examples of investment assets include mutual funds, stocks, bonds, real estate, and retirement savings accounts such as 401(k)s and IRAs.
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A Comparison of Mutual Funds and Exchange Traded Funds (ETFs): Twelve Factors to Consider
Prepared by Dr. Jason L. Johnson, Associate Professor, Extension Economist, Registered Investment Advisor Texas A&M University and Texas AgriLife Extension.
Since the early 1990s, investors have had a choice between traditional mutual funds and a more recent counterpart labeled exchange traded funds (ETFs). Mutual fund assets continue to dominate the financial market with over $12.3 trillion invested. Between 2002 and the end of 2007, assets in ETFs increased almost 500% to more than $608 billion. On the surface, these two …
Saving for Children’s College Education
Yilmazer, T. (2008). Saving for children’s college education: an empirical analysis of the trade-off between the quality and quantity of children. Journal of Family and Economic Issues, 29(2), 307-324.
Brief Description: This paper examines the effect of children’s college expenses on household savings. Using the actual amount of parents’ financial support, the model estimates the expected expenditures on children’s college education and investigates the effect of expected expenditures on parents’ savings. The results show that households save in advance …
Fact Sheet Explains Options for Saving for College
The fact sheet lists information on personal investment accounts; traditional Individual Retirement Accounts; Roth IRAs; 401(K) and 403(B) retirement plans; custodial accounts, such as a Uniform Gift to Minors; Coverdell Education Savings Accounts; 529 plans; and U.S. Savings Bonds.
Released March 26, 2009
COLUMBUS, Ohio — Parents who are trying to save for their children’s education but aren’t sure where to start may find guidance in a four-page fact sheet, “College Savings Options,” from Ohio State University Extension.
The fact …
Stock
In finance: A certificate representing a share of ownership in a company. Stock is the ownership of a corporation represented by shares that are a claim on the corporation’s earnings and assets. There are many kinds of stocks, the most widely known being common stock, which usually entitles a stockholder to vote in the election of directors and other corporate matters.
In viticulture: Grape variety used as the underground portion of a grafted vine onto which the scion…
Mutual Fund
A pooled investment vehicle; its securities are managed for a fee by a professional investment group.…
Blue-Chip Stock
A term, derived from the most expensive chips in a poker game, used to indicate the stock of companies with long records of growth and profitability; i.e., the company has been growing and has been paying dividends for a long time.…
Annual Report
A report that public companies are required to file annually that describes the preceding year’s financial results and plans for the upcoming year. Annual reports include information about a company’s assets, liabilities, earnings, profits, and other year-end statistics. If the public can buy stock in a company, that company has to issue a report every year that explains how well it did in the past year and what its strategy is for next year. The report includes what the company …